Restructuring support agreement

A Restructuring Support Agreement (RSA) is a contract between a struggling company and its creditors to help the company reorganize its finances. In essence, it outlines how the company will address its debts while continuing to operate, often during bankruptcy proceedings. The agreement is designed to gain the support of key creditors to ensure a smoother process for restructuring. It typically includes terms for new financing, debt reductions, or changes in payment schedules, allowing the company a chance to recover and return to profitability while ensuring creditors have a plan for getting repaid.